Cablevision Announces Acquisition of Bresnan Communications

BETHPAGE, N.Y.--()--Cablevision Systems Corporation (NYSE: CVC) and Bresnan Communications, which is majority owned by Providence Equity Partners, today announced a definitive agreement under which a newly-formed subsidiary of Cablevision will acquire Bresnan in a transaction valued at $1.365 billion. Bresnan is the nation’s thirteenth largest MSO with cable operating systems in Colorado, Montana, Wyoming and Utah that pass more than 630,000 homes and serve more than 300,000 basic subscribers.

Cablevision President and CEO James L. Dolan said: “We believe the acquisition of Bresnan is an excellent opportunity to leverage Cablevision’s strong management team and build shareholder value. Bill Bresnan was a cable legend and was close to so many in the industry, including the Dolan family. The Bresnan team has built an impressive cable business that performs well financially, and we look forward to working to enhance those systems further.”

Cablevision’s Chief Operating Officer Tom Rutledge will oversee the Bresnan properties. Mr. Rutledge commented: “Bresnan is a well-managed company that has invested wisely in its operations and has pursued a strategy which is aligned and quite similar to Cablevision’s. We look forward to building on Bresnan’s record by pursuing among other things: broader deployment of digital voice; the addition of more high-definition television offerings; the expansion of our groundbreaking Triple Play offer; and, the rollout of new services that have already shown great promise.”

“Since the early days of our industry, the Bresnan name has stood for exceptional performance and an unflinching commitment to customers, colleagues and community,” said Jeffrey S. DeMond, Bresnan’s President and CEO. “I could not be more proud of our team’s accomplishments, nor more appreciative of the support of our great partners. Bill Bresnan would have agreed, and I speak for the entire family of Bresnan employees in expressing our confidence that Bresnan will enjoy continued success as part of the Cablevision family of companies.”

“We have thoroughly enjoyed our successful partnership with the exceptional team at Bresnan Communications over the past seven years,” said Michael Dominguez, a Managing Director at Providence Equity Partners, the majority equity holder of Bresnan. “We are proud of the franchise they have built and market leading operational performance they consistently demonstrated. We believe Cablevision shares the same commitment to operational excellence and that Bresnan will continue to thrive under their ownership.”

Upon completion of the Bresnan transaction, Cablevision will gain advanced cable systems serving more than 300,000 basic subscribers through the delivery of high-quality services, including digital television, high-speed Internet and voice, across an upgraded fiber-optic coaxial network. For Bresnan, the transaction highlights its success in developing this market-leading telecommunications company.

Financially, Cablevision expects that Bresnan will be acquired by a newly-formed, unrestricted subsidiary of Cablevision with standalone financing. The subsidiary is expected to be financed using non-recourse debt of approximately $1 billion and an equity investment by Cablevision of less than $400 million.

BofA Merrill Lynch and Citi have provided commitments for debt financing for this transaction.

The completion of this transaction, which the company expects to happen in late 2010 or early 2011, is subject to certain customary closing conditions, including regulatory approval.

Citi acted as lead financial advisor to Cablevision. BofA Merrill Lynch and Guggenheim Securities, LLC also provided financial advice to Cablevision. Sullivan & Cromwell LLP acted as legal counsel to Cablevision. For Providence and Bresnan, UBS Investment Bank and Credit Suisse Group served as financial advisors and Weil, Gotshal & Manges LLP and Holland & Hart LLP served as legal advisors.

Cablevision management will discuss today’s announcement on a call for investors at 11:15 a.m. ET on Monday, June 14, 2010. Members of the media are invited to listen in. Please call 1-888-694-4641 (mention pass code number 81994062) approximately 10 minutes prior to the call. This call also will be available on the Internet via our Web site www.Cablevision.com under the heading “Investor Information.”

For those unable to join the conference call, you may access a recording of the call by dialing 1-706-645-9291 (mention pass code number 81994062). The call replay will be available from 1:00 p.m. ET on Monday, June 14, 2010 until 11:59 p.m. ET on Monday, June 21, 2010. The Internet replay will be available on the Cablevision Web site until Monday, June 21, 2010.

About Cablevision Systems Corporation

Cablevision Systems Corporation is one of the nation's leading telecommunications, media and entertainment companies. In addition to its Optimum-branded cable, Internet, and voice offerings, the company owns and operates News 12 Networks, MSG Varsity and Newsday Media Group. Cablevision's assets also include Rainbow Media Holdings LLC and its programming and entertainment businesses, AMC, IFC, Sundance Channel, WE tv and IFC Entertainment, as well as Clearview Cinemas. Additional information about Cablevision is available on the Web at www.cablevision.com.

About Bresnan Communications

Bresnan Communications, a broadband telecommunications company founded by Bill Bresnan in 1984, serves more than 320,000 customers throughout Colorado, Montana, Wyoming and Utah. Bresnan's advanced services and features include high-definition digital TV with video-on-demand, super high-speed Internet and digital phone. The company also serves the business community through its Business Services and Advertising Sales divisions. More information about Bresnan is available at www.bresnan.com.

About Providence Equity Partners

Providence Equity Partners is the leading global private equity firm specializing in equity investments in media, entertainment, communications and information services companies around the world. The principals of Providence manage funds with over $22 billion in equity commitments and have invested in more than 100 companies operating in over 20 countries since the firm’s inception in 1989. Significant existing and prior investments include Altegrity, Casema, Com Hem, Digiturk, Education Management Corporation, eircom, Hulu, Idea Cellular, Kabel Deutschland, NexTag, Ono, PanAmSat, ProSiebenSat.1, Recoletos, TDC, Univision, VoiceStream Wireless, Warner Music Group, Western Wireless and Yankees Entertainment and Sports Network. Providence is headquartered in Providence, RI (USA) and has offices in New York, London, Los Angeles, Hong Kong and New Delhi. Providence Equity Partner’s website is www.provequity.com.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein.

Contacts

Cablevision Systems Corporation
Charlie Schueler, 516-803-1013
EVP, Media Relations
or
Bresnan Communications
Shawn Beqaj, 914-641-3324
Cell: 914-329-7182
VP, Public Affairs
or
Cablevision Systems Corporation
Patricia Armstrong, 516-803-2264
SVP, Investor Relations
or
Providence Equity Partners
Andrew Cole, 212-687-8080
Sard Verbinnen & Co
acole@sardverb.com

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Contacts

Cablevision Systems Corporation
Charlie Schueler, 516-803-1013
EVP, Media Relations
or
Bresnan Communications
Shawn Beqaj, 914-641-3324
Cell: 914-329-7182
VP, Public Affairs
or
Cablevision Systems Corporation
Patricia Armstrong, 516-803-2264
SVP, Investor Relations
or
Providence Equity Partners
Andrew Cole, 212-687-8080
Sard Verbinnen & Co
acole@sardverb.com